Asia Pacific investment volumes fell 22% in the third quarter 2023

Commercial real estate investment activity in Asia Pacific moderated 22 percent year-on-year (y-o-y) in the third quarter 2023, recording the lowest quarterly figure since second quarter 2010, according to JLL.

The investment activity in Asia Pacific fell to $21.3 billion as investments in office and retail continued to experience sharp contractions, while industrial & logistics and living & multifamily sectors remained resilient.

“Despite a strengthening return to office narrative and low vacancy rates in many markets, investors remain generally more cautious on the office sector. The high cost of debt has also exerted repricing pressures, and most markets remain in price discovery mode as investors adjust their targeted returns for acquisitions. We maintain our confidence in the longer-term attractiveness and resilience of Asia Pacific’s commercial real estate but remain realistic that investors are seeking more clarity on pricing and the macroeconomy,"